Ways to Earn from Crypto other than Trading

Fredrick Awino
08.07.2022
363 Views

To many, cryptocurrency is no more a new topic. If you have not heard about those testifying to have made just so much wealth courtesy of crypto investing then probably have caught wind of those reeling from losses. Whichever side of the story you have heard, it’s true that like any venture, people make profits and losses in cryptocurrency. One outstanding thing about cryptocurrency trading and investing is that there are a couple of ways to make money. 

WARNING: Investing in crypto, or other markets, can be of a high risk for your savings. Do not invest money you cannot afford to lose, because there is a risk for losing all of your money when investing in crypto, stocks, CFDs or other investments options. For example 77% of retail CFD accounts lose money.

You will see cryptocurrency traders keeping a close monitoring of the cryptocurrency charts so as not to miss a hot trading opportunity. However, some investors do not have the time or wherewithal to analyse the market trends and trade at best opportunities. This does not necessarily preclude such people from investing in crypto. There are so many ways currently on ways that people can invest in cryptocurrency. As a matter of fact, new options keep emerging as time goes by. In a nutshell, it is safe to say that cryptocurrency opens a sea of opportunities for people to get involved. 

Mixed expectations from cryptocurrency investing and trading

One major reason why people venture into the field of cryptocurrency is to make money. Sadly, only a handful succeed. Many people either give up even before reaching the core of crypto investment, or just become the victims of the surging cases of hacking and frauds. Besides, most people think that the only way to make money of crypto investment is through trading. That is not the case. 

To be frank, many traders who are already in the business can attest to the fact that there are a number of methods that you can use to make legitimate money with cryptos other than the popular trading. In this guide, I will help you understand some of the numerous ways to potentially make money with crypto. Let’s go!

Buy and HODL cryptocurrency 

Buying and HODling is one of the common ways of making money from cryptocurrencies.  In our list, this could be the irrefutably best options for beginners. It simply refers to the process of buying the cryptos and holding onto your tokens eventually. Ideally, it is a similar method to a method, which is used in stock exchange, and involves buying stocks and keeping shares for several years without exchanging them. 

Majority of investors buy crypto coins such as Bitcoin, Ethereum, Ripple, Litecoin and others and wait for their values to rise again. Thereafter, they sell them at a profit. 

If you want to use this strategy to make money with the cryptos without trading, it is important to consider a number of steps. Notably, consider identifying a more stable and volatile asset that can change its value faster to earn you more profits. We recommend Bitcoin and Ethereum because of their regular fluctuations.

You should thus consider the two as safe investments. However, also feel free to look for other crypto assets, which you feel, can be good for you. All you need to do in this case is to invest first before HODling any of the coins. 

Earning Cryptocurrency dividends 

Another way of earning with the cryptocurrency without trading is to earn the dividends. In fact, it is perfectly possible to buy cryptos and hold them for dividends. In simple terms, the dividends is a small amount of cash issued to stakeholders by the company they have invested. 

Although it may not be easy for a large proverbial tidal wave of dividends to enter your account, your total amount of cash will definitely increase in your account. Some of the few examples of the cryptos that pay out dividends include the Bitcoin, COSS, NEO, Komodo, NAVcoin and KUCOIN among others.

Remember, not all coins are suitable for your crypto portfolio. I therefore advise you to do some research in order to know which coins pay dividends and if such dividends are sufficient to make it worth investing in.  

Staking Cryptocurrency 

If you want to earn some profits without participating in the actual trading, then staking is another method that I would recommend to you. When you stake your crypto holdings, it simply means that you have put them to work. Ideally, this is a mechanism of earning some passive money on the digital assets.  You should know that this is similar to a savings account that bears interests over a specified period. 

Remember, your cryptos can also be used to prevent errors associated with the blockchain when you stake them. Although some people have perceived staking a daunting activity that involves validation of transaction yourself, it is not the case. You can easily perform the transaction through a user-friendly platform offered by most exchanges. 

Several drawbacks of staking exist though, and therefore you should always be ready for them. You will most likely be denied access to your funds once they are staked. They will be locked for a certain period thereby preventing you from trading them during the vesting. Note that staking is however not allowed when trading Bitcoin. You can try Ethereum 2.0 and Solana on this. 

Cryptocurrency Lending 

You should try out crypto lending if at all you want to make additional money with cryptocurrencies. Crypto lending simply involves two parties: lender and borrower. An agreement between the two is also a precondition. Some of the platforms that allow this type of strategy include Celsius, Oasis, SALT lending and Nexo among others. 

More specifically, you can offer your currencies as a collateral to a lender who accepts the preconditions terms that can be in the form of cash or another crypto.  Either way, it is a lucrative way of earning some extra cash other than trading. If possible therefore, lend out the crypto assets and subsequently earn additional assets. Explore this method as it can suit you. 

Cryptocurrency Mining 

I hope it is not your first time to hear about mining when investing with cryptocurrencies. Mining is another strategy through which you can get some additional income to your investment. It refers to the process of connecting a specialist hardware to a desktop device, which further connects to the blockchain of the respective cryptocurrencies. 

As a miner, therefore, you will use the available processing power to solve some complex equations to generate a net block in a blockchain. You will earn new tokens and reward as a result. It is possible to join a Bitcoin Mining pool that consists of numerous miners who pool their resources to mine Bitcoin.

Do not hesitate to explore this method. You should be earning some passive income now. Try it out. 

Working for Cryptocurrency Companies   

This is a popular way of getting income from the sector. You can work for the crypto currencies at any capacity. You could be a content creator, digital marketer, web developer and designer, back-end engineer and many more. The only things you will need here are the right qualifications and your needs. 

Many benefits exist here. You will get flexibility of work, and work remotely in your own freedom. Remember, most crypto currencies provide extremely competitive packages. As such, go for the opportunities as soon as they arise. 

Our Conclusion about earning from cryptocurrency

Are you still asking yourself, “So I can make money with cryptocurrency other than trading? Well, you have the answer now. As you can see, I have provided information about six common ways. You can try the ones that you feel can work out for you and assess their impacts on you periodically. 

Author Fredrick Awino